On january 1, 2017, sheffield corp. purchased 4,500 shares of treasury stock. other information regarding sheffield corp. is provided as follows. 2017 2016 net income $119,000 $109,000 dividends on preferred stock $25,000 $25,000 dividends on common stock $20,900 $18,650 weighted-average number of common shares outstanding 48,000 51,000 common stockholders’ equity beginning of year $710,400 $555,900 common stockholders’ equity end of year $948,000 $708,900 (a) compute return on common stockholders’ equity for each year. (round answers to 1 decimal place, e. g. 15.2.) 2017 2016 return on common stockholders' equity enter the ratio in percentages rounded to 1 decimal place%.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.